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NCERT Solutions class 12 Economics Money and Banking

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NCERT Solutions class 12 Economics Money and Banking Class 12 Economics book solutions are available in PDF format for free download. These ncert book chapter wise questions and answers are very helpful for CBSE board exam. CBSE recommends NCERT books and most of the questions in CBSE exam are asked from NCERT text books. Class 12 Economics chapter wise NCERT solution for Economics part 1 and Economics part 2 for all the chapters can be downloaded from our website and myCBSEguide mobile app for free.

Download NCERT solutions for Money and Banking  as PDF.

NCERT Solutions class 12 Economics Money and Banking


  • Introduction
  • Theory o Consumer Behavior
  • Production and Costs
  • Theory of Firm Under Perfect Competition
  • Market Competition
  • Non Competitive Markets


  • Introduction
  • National Income Accounting
  • Money and Banking
  • Income Determination
  • Government Budget and Economy
  • Open Economy Macroeconomics

CHAPTER Three Money and Banking

  • Functions of Money
  • Demand for Money
    1. The Transaction Motive
    2. The Speculative Motive
  • The Supply of Money
    1. Legal Definitions: Narrow and Broad Money
    2. Money Creation by the Banking System
    3. Instruments of Monetary Policy and the Reserve Bank of India

NCERT Solutions class 12 Economics Money and Banking

1: What is a barter system? What are its drawbacks?

2. What are the main functions of money? How does money overcome the shortcomings of a barter system?

3: What is transaction demand for money? How is it related to the value of transactions over a specified period of time?

4: Suppose a bond promises Rs.500 at the end of two years with no intermediate return. If the rate of interest is 5 per cent per annum what is the price of the bond?

5: Why is speculative demand for money inversely related to the rate of interest?

6. What is `liquidity trap’?

7. What are the alternative definitions of money supply in India?

8. What is a ‘legal tender’? What is ‘fiat money’?

9. What is High Powered Money?

10. Explain the functions of a commercial bank.

11. What is money multiplier? How will you determine its value? What ratios play an important role in the determination of the value of the money multiplier?

12. What are the instruments of monetary policy of RBI? How does RBI stabilize money supply against exogenous shocks?

13. Do you consider a commercial bank ‘creator of money’ in the economy’?

14. What role of RBI is known as ‘lender of last resort’?

NCERT Solutions for Class 12 Economics

NCERT Solutions class 12 Economics Money and Banking PDF (Download) Free from myCBSEguide app and myCBSEguide website. Ncert solution class 12 Economics includes text book solutions from both part 1 and part 2. NCERT Solutions for CBSE Class 12 Economics have total 12 chapters. 12 Economics NCERT Solutions in PDF for free Download on our website. Ncert Economics class 12 solutions PDF and Economics ncert class 12 PDF solutions with latest modifications and as per the latest CBSE syllabus are only available in myCBSEguide

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